The deceased Maoists have been identified as Mala Sanjeeva alias Yadana of Annanthpur district and Epe Swamy alias Narender of Khammam district both belonging to Andhra Pradesh, police said.
The gunbattle took place around 1 pm near Mungudavalsa forest, situated at a distance of about 100 km from here, under Pottangi police limits.
"We had information about the movement of a group of Maoists in Mungudavalsa forest and an operation was launched this morning by the District Voluntary Force (DVF). Spotting our men, the Naxals fired and the DVF personnel retaliated," said IG (south-west range) Yashwant Jethwa.
Police said the deceased ultras were transferred from East Visakha division of the Maoist outfit in Andhra Pradesh to Nandapur area committee to strengthen the rebel organisation in Koraput. The ultras carried cash reward of Rs five lakh each in Andhra Pradesh and Odisha.
"The deceased Maoists were involved in killing four BSF men at Sunki ghat road in the district on August 2013," said SP (Koraput) Awinash Kumar.
Police have recovered one sten gun, four magazine, one hand grenade, one carbine and other Maoist belongings from the encounter site.
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